Reducing car insurance costs

Recent reports and figures have recently shown how the cost of vehicle insurance cover in the UK is soaring, with premiums now thought to be a massive 30.8 percent higher than they were a year ago. This is especially troubling for drivers in the current climate because of the soaring cost of fuel, which is already financially crippling many drivers. The rocketing cost of insurance is an added problem to the many drivers who are now struggling to keep their cars on the road.

For many people these costs are unavoidable, because they need to use their cars to get to and from work in order to earn money but at the same time they are struggling to earn enough money to pay for the cost of running their cars. With many having their pay frozen and having to cope with other living cost increases too the financial pressure it getting too tough to handle.

For those that have seen their car insurance costs soar there are a number steps that they can take to try and reduce these costs. This includes:

Comparing cover: The key part of getting cheaper cover for your insurance is to compare cover from a range of providers as the cost of cover can vary from one provider to another. Get online and see what sorts of prices the different providers can offer – you can use an insurance price comparison site but do bear in mind that not all insurance providers will be included on these sites.

Drop you level cover: Of course you do need to have insurance cover in place in order to legally be able to drive your car on the road. However, there are different levels of cover available so you may want to consider dropping the level of cover that you have if there is a big difference between your current level of cover and the next one down.

Change your car: If you have a car that is eating petrol and costs more in tax then it may be worth considering changing your car to a more economical model to cut costs in a range of areas, which would include lower insurance bracket, less petrol, and lower tax. Some people have vehicles that are much larger than they actually need so now might be a good time to trade this in and opt for a cheaper, more economical model.

 

Tags: uk, big difference, Driving, Vehicle insurance, order, different levels, part, vehicle

Lying motorists to be weeded out by insurance firms

It has been reported recently that motorists that try and hide or lie about convictions when they apply for insurance cover are to find themselves at the centre of a crackdown by the insurance industry. Read more

Tags: insurance industry official, better deal, car insurance fraud, Association of British Insurers, insurance cover, car insurance, Driving, economics

Uninsured drivers “think they can get away with it”

With as many as 350,000 uninsured motorists on the roads last year, there is concern that people do not view driving without insurance as a serious crime, believing instead that “they can get away with it,” says the British Insurance Brokers’ Association (BIBA).

One reason for this may be that the government has never come out with a campaign condemning uninsured driving and whilst people are aware that they should wear seatbelts, tax their cars and not drive after drinking, this issues does not seem to be on “everybody’s radar”.

Graeme Trudgill, technical and corporate affairs executive for BIBA, said: “People just don’t see it as a serious crime, they think they can pay £500 in insurance, or drive without it and if they get caught, they pay a £100 fine and that’s not too scary.”

According to MoneyExpert, 18 to 24-year-olds are the most likely to drive uninsured and 11 per cent of uninsured drivers say they can’t afford the premiums

BIBA says a new enforcement agency is going to be launched next year which will make uninsured driving more difficult and police now also have the power to seize vehicles if the driver is not covered.

Tags: british, finance, everybody's radar".graeme trudgill, government, Driving

Consumers are unlikely to switch accounts unless “they suffer”

Despite an awareness of the benefits of switching bank accounts, consumers are reluctant to take advantage of what this move will bring, one financial expert has claimed.

According to moneysupermarket.com, the majority of providers in the UK want consumers to come in on a service proposition, not a price proposition.

This tends to be a less tangible, lightweight offer to spenders as it merely says ‘we have better services’, said the financial advisers.

Kevin Mountford, head of savings and current accounts at Moneysupermarket.com, said that there is an awareness of the benefits of moving accounts.

“However, it does not seem that people have the impetus or the appetite to do so unless they suffer and gets a poor service from their provider,” he continued.

Of those surveyed by the Watchdog, 46.8 per cent did not think they should be charged for going over their overdraft limit without authorisation, while 28.2 per cent felt that it was difficult to get a complaint with their bank resolved.

Tags: watchdog, Driving, advantage, bank account, service proposition, overdraft, bank, service

Londoners spend the most on loved ones

London males spend an estimated £2,458 on their loved ones per year, double the national average, according to the latest figures.

Findings from moneysupermarket.com show that women spend £659 on their partner each year while men fork out £1,326 on items such as anniversary gifts, dining out, flowers and special holidays.

According to the figures, female and male Londoners spend an average of £1,776 on each other compared with those in the north where £873 is spent.

Richard Mason, director at price comparison site moneysupermarket.com, said: “People might laugh at the north where the starry-eyed spend is less than half of that in London, but £873 a year is still a pretty respectable figure.”

“And it’s the Midlands that has the dubious honour of having three per cent of people spending nothing on their partner,” he added.

The research also found that British males spend seven times more on gifts for their partners than on extras for their cars, which came in at £191.

Further findings from the firm show many Brits miss out on the significant tax-free savings available in Individual savings accounts.

Tags: nothing, spending, london, Credit card, Richard Mason

Brits to miss out on tax free savings

Many Brits will miss out on significant tax free savings this year, according to research from financial experts.

Findings from moneysupermarket.com have shown that while only 32 per cent of Brits plan to invest in an individual savings accounts (Isas) this year, only 27 per cent know the allowance for these tax free investments will be increased from £3,000 to £3,600 per year as of April 5th.

Kevin Mountford, head of savings at moneysupermarket.com, said: “It is disappointing so many Brits won’t take advantage of this excellent savings vehicle.”

“With just a third of people looking to utilise their tax free Isa allowance it looks like many people will miss out,” he added.

According to moneysupermarket.com, cash is the most popular option for those planning to invest in an Isa with 73 per cent saying this is where they will put their money.

Meanwhile, the finance experts recently said that savings providers are introducing more online products due to the increase in the number of ’silver-surfers’.

Tags: cent, online products, tax free savings, free isa allowance, savings providers, Driving, advantage

Abbey first time buyers turn to family

First-time buyers (FTBs) are increasingly turning to brokers rather than friends and family for mortgage advice, Abbey said today.

According to research from the lender released today, 23 per cent of homeowners consulted those close to them while buying their first home – compared with 13 per cent who asked a broker for advice.

However, 28 per cent of the first-time buyers of today – those in the 25-34 age group – said that they used a broker: the largest proportion across the demographics. This could signify an increasing dependence on professional rather than personal mortgage advice.

By way of comparison, just two per cent of OAPs consulted a broker over their first property purchase.

Managing director at Abbey Ricky Okey said that the research was “promising”, because it showed “a shifting attitude of young first-time buyers who are waking up to the benefits of seeking advice from intermediaries.

“Brokers can build on this changing attitude to become a positive driving force in the first-time buyer market.”

Tags: driving force, demographics, young first-time buyers, Driving, today

Drivers scared to turn right

Millions of us make a special effort to avoid turning right when driving.

That is according to new research from Churchill which found that many motorists are also afraid of joining the motorway and going onto a roundabout.

The insurance firm asked drivers what they most fear about getting behind the wheel, with 34 per cent of women and 29 per cent of men saying that they do not enjoy turning right.

These drivers are so afraid of what might happen that they change their route to ensure that they avoid ’scary’ situations.

Parking is another issue for many, with 43 per cent saying that they do not feel confident enough to park where they want, leading to 13 per cent of people having to walk further than is necessary.

“When motorists pass their driving tests, it doesn’t necessarily qualify them as a confident driver,” commented Frances Browning from Churchill.

“As our research shows, there are those who actively avoid certain driving manoeuvres, sometimes to the extent that they don’t drive on specific roads or at specific times.

“It may be worth undertaking a refresher course now and again to increase driver confidence and make the roads safer for everyone,” she added.

Taking a refresher course may not only help to instil more confidence in a driver but can also reduce car insurance premiums for many.

Tags: Vehicle insurance, driving tests, Driving, car insurance premiums, confident driver, specific times

Breakdown insurance, is it worth the money?

Many drivers worry about their car breaking down in the middle of a motorway, isolated area or even a town, but is it worth spending money on separate insurance for those “just in case” moments? Read more

Tags: motor, different motoring laws, breakdown insurance, Driving, RAC plc

No Claims Bonuses: how they work

Car insurance companies in the UK incorporated a program called a No Claims Bonus or No Claims Discount. The meaning behind these programs is for the consumer to help lower their car insurance premiums. Read more

Tags: no claims bonus, discount maximum, car insurance, car insurance company, claim bonus